Vertu Motors (VTU) achieved a record £1bn of sales in the first half, as new and used cars flew off the forecourts. Adjusted pre-tax profit increased by over a half to £13.3m.
Volumes of new, used and fleet cars motored 12 per cent ahead on a like-for-like basis, while sales of commercial vehicles were up by nearly a third. Acquisitions made in previous years were a further contributor to growth. The businesses were underperforming when Vertu snapped them up, but have since been transformed. Aftersales were also key. Revenue here rose 4 per cent, and profitability improved as higher volumes boosted efficiency. Vertu is highly operationally geared: even though operating costs grew 20 per cent, as a proportion of total sales they fell from 10 per cent to 9.4 per cent.